A new anaerobic digestion plant secured £1.5 million through alternative financing.
BioDynamic UK was rejected for capital investment on 25 occasions before it partnered with alternative funding specialists F&P, which listed the project on a peer-to-peer (P2P) platform.
Within two weeks the company had secured the necessary investment for the site in Colwick, Nottinghamshire.
With its construction phase now complete, BioDynamic UK has gone on to secure additional funds of nearly £750,000 to expand the plant further and increase its power output to 2.5MW.
This means it now has the capacity to convert 150,000 tonnes of food waste every year into electricity for the local area.
Owner of BioDynamic UK, Maxwell Bagnall, says finance was the “biggest hurdle” during the construction phase of the plant.
He said: “In our industry we have to be fast-moving otherwise subsidies and grants will expire and opportunities will be missed.
“Traditional lenders see the risk as being too high but are more comfortable once the facility has been built.”
The second Contracts for Difference (CfD) auction has been launched, which supports renewable technologies and guarantees developers a certain price for the low carbon electricity they produce over 15 years.